STRATAFOLIO has customizable Subcategories for all Operating Expenses. For NNN leases, most of the expenses will be CAM, Insurance, and Property Taxes. Depending on the level of detail needed on the CAM Reconciliation Report, it can be broken down into more specific subcategories such as snow removal, parking lot, elevator, light bulbs, or whatever other categories the budget and leases require. This report is intended to be shared with your tenants, so only include the subcategories that you want to share the specifics for.
Subcategory naming suggestion
Subcategories are also customizable per lease in STRATAFOLIO. Not all tenants pay for the same expenses, and this is determined by the lease, so only the expenses that they have agreed to pay in the lease for should be added. It is best practice to include enough detail to help explain the expenses to the tenant at the end of the year. The example below has the standard subcategories added.
- Janitorial
- Lawn Care and Landscaping
- Repairs & Maintenance
- Snow Removal
- Utilities
- Insurance
- Real Estate Taxes
How do I add a new Subcategory to my portfolio?
As part of the Onboarding process, these were probably already. Some times, you may need additional Subcategories added to your portfolio. To add a new subcategory of CAM or Operating Expenses follow the directions below.
On the main Organization page, new or additional subcategories can be created. Open the Operating Expenses tab.
Select Add An Op-Exp Subcategory to add a new Subcategory.
Select the Operating Expense Category to use in the drop-down
- CAM
- Insurance
- Real Estate Taxes
- Other Non-Reconciliable Expenses
- Reconcilable Expense
On the Rent Roll in STRATAFOLIO, the amounts for each of the categories will be displayed. For any of the categories, if there is more that one amount listed, they will be added together and shown as one amount. This is most common for the CAM category.
Type the Operating Expense Subcategory Name that you would like to use. The Tenants will be shown these names on the CAM Reconciliation Reports. Be sure that the name is entered as it should appear to them.
Is this Subcategory Controllable or Non-Controllable? This is the default setting for the subcategory when adding it to your leases. You can changed or updated this per lease as needed. You can also select N/A and this is the default for this field. During the onboarding process, subcategories are set to N/A unless there are caps provided.
NOTE **Changing the Subcategory to Controllable or Non-Contollable here, does not change the leases that have already been added to STRATFOLIO. If any changes need to be done, it will need to be done at the lease level.
After adding, you will need to add the Subcategories to the lease(s) they apply to and map them to your QuickBooks account. For more information on how to map the QuickBooks account, see our Knowledge Base article How to Map A New QuickBooks Account in STRATAFOLIO.
